CONSOLIDATED FINANCIAL PERFORMANCE

Transcription

1 Mumbai, 17 th April 2015 CONSOLIDATED REVENUE OF ` 388,494 CRORE ($ 62.2 BILLION), DOWN 13.0 RECORD CONSOLIDATED PBDIT OF ` 45,977 CRORE ($ 7.4 BILLION), UP 5.0 CONSOLIDATED SEGMENT EBIT OF ` 28,674 CRORE ($ 4.6 BILLION), UP 12.0 RECORD CONSOLIDATED NET PROFIT OF ` 23,566 CRORE ($ 3.8 BILLION), UP 4.8 RECORD QUARTERLY CONSOLIDATED NET PROFIT OF ` 6,381 CRORE ($ 1.0 BILLION), UP 8.5 Reliance Industries Limited (RIL) today reported its financial performance for the quarter / year ended 31 st March, Highlights of the audited financial results as compared to the previous year are: CONSOLIDATED FINANCIAL PERFORMANCE (In ` Crore) 4Q 3Q 4Q wrt 3Q wrt 4Q wrt Turnover 70,863 96, ,208 (26.4) (33.3) 388, ,339 (13.0) PBDIT 11,973 11,109 11, ,977 43, Profit Before Tax 8,509 7,018 7, ,114 28, Net Profit 6,381 5,256 5, ,566 22, EPS (`) HIGHLIGHTS OF QUARTER S PERFORMANCE (CONSOLIDATED) Revenue (turnover) decreased by 33.3 to ` 70,863 crore ($ 11.3 billion) PBDIT increased by 3.8 to ` 11,973 crore ($ 1.9 billion) Profit Before Tax increased by 11.3 to ` 8,509 crore ($ 1.4 billion) Cash Profit increased by 6.0 to ` 9,516 crore ($ 1.5 billion) Net Profit increased by 8.5 to ` 6,381 crore ($ 1.0 billion) Page 1 of 33

2 HIGHLIGHTS OF QUARTER S PERFORMANCE (STANDALONE) Revenue (turnover) decreased by 39.7 to ` 59,013 crore ($ 9.4 billion) Exports decreased by 44.0 to ` 37,480 crore ($ 6.0 billion) PBDIT increased by 3.8 to ` 10,762 crore ($ 1.7 billion) Profit Before Tax increased by 12.8 to ` 8,226 crore ($ 1.3 billion) Cash Profit increased by 7.7 to ` 8,658 crore ($ 1.4 billion) Net Profit increased by 10.9 to ` 6,243 crore ($ 1.0 billion) Gross Refining Margin of $ 8.6/bbl for the year and $ 10.1/bbl for the quarter Dividend of 100, payout of ` 3,559 crore ($ 569 million) CORPORATE HIGHLIGHTS FOR THE QUARTER (4Q ) In January 2015, RIL priced a Rule 144A/Regulation S offering of US$ 1,000 million Senior Unsecured Notes due 2025 (the 10-year Notes ).The 10 Year Notes have been assigned a rating of BBB+ (S&P) and Baa2 (Moody s). The 10-year Notes have been priced at 240 basis points over the 10-year US Treasury Note, at a price of to yield The proceeds will be utilized for its ongoing capital expenditure. In February 2015, RIL priced a Rule 144A/Regulation S offering of US$ 750 million Senior Unsecured Notes due 2045 (the 30-year Notes ).The 30-year Notes have been assigned a rating of BBB+ (S&P) and Baa2 (Moody s). The 30-year Notes have been priced at basis points over the 30-year US Treasury Note, at a price of to yield The funds will be utilized for its ongoing capital expenditure. In February 2015, RIL has applied for a Payments Bank license. RIL will be the Promoter and State Bank of India ( SBI ) will be the joint venture partner with equity investment of up to 30 per cent. This partnership brings together the combined strengths of two of India s Fortune 500 corporations committed to making a transformative impact on India s financial inclusion landscape. In March 2015, Reliance Jio Infocomm Ltd ( RJIL ), a subsidiary of RIL, announced that it has successfully acquired the right to use spectrum in 13 key circles across India in the 800MHz and 1800MHz bands in the recently concluded spectrum auction conducted by DoT, Government of Page 2 of 33

3 India. RJIL plans to provide seamless 4G services using LTE in 800MHz, 1800MHz and 2300MHz bands through an integrated ecosystem. With this investment, in addition to the pan- India 2300MHz spectrum, RJIL has spectrum in either 800MHz or 1800MHz or both in 20 out of total 22 circles in the country. This combined spectrum footprint across frequency bands provides significant network capacity and deep coverage. Through this acquisition, RJIL s total equivalent spectrum footprint has increased from 597.6MHz to 751.1MHz (including uplink and downlink), strengthening its position as the largest holder of liberalized spectrum. In March 2015, RIL and Myanma Oil & Gas Enterprise (MOGE), an enterprise of the Government of Myanmar, have signed production sharing contracts for two offshore blocks (M17 and M18).RIL will be the operator of the blocks with a 96 per cent participating interest. United National Resources Development Services Co. Ltd. (UNRD), a Myanmar company, will hold the remaining interest in the block. RIL s participation is in line with its strategy to expand its international asset base by investing in internationally attractive oil and gas destinations. Commenting on the results, Mukesh D. Ambani, Chairman and Managing Director, Reliance Industries Limited said: FY has been a very successful and important year for Reliance. In a time when the collapse of crude oil prices unsettled the hydrocarbons markets, our refining business delivered record earnings. The earnings power demonstrated by our hydrocarbon businesses in this environment validates our philosophy of investing in world-scale, cost competitive assets, cutting-edge technology and the talent of people. This year we also made giant strides in our quest to sustain Reliance s growth momentum with the highest-ever capital investment into our hydrocarbon business and our next-generation digital services initiative. Our organized retail business maintained its high growth trajectory with a wider pan-india footprint. Particularly gratifying, we achieved this, while maintaining our track-record of adhering to highest standards of safety and operational excellence. FY : FINANCIAL PERFORMANCE REVIEW (CONSOLIDATED) RIL achieved a turnover of ` 388,494 crore ($ 62.2 billion) for the year ended 31 st March 2015, a decrease of 13.0, as compared to ` 446,339 crore in the previous year. The decline in turnover Page 3 of 33

4 reflects sharp fall in crude oil prices during the second half of the year. Crude oil price averaged at $ 85.4/bbl in, a fall of 21 on Y-o-Y basis. With decrease in oil and product prices, exports from India were lower by 17.1 at ` 228,651 crore ($ 36.6 billion) as against ` 275,825 crore in the previous year. Strong operating performance from the refining business and stable petrochemicals business performance led higher operating profits. Operating profit before other income and depreciation increased by 7.3 on a Y-o-Y basis from ` 34,799 crore to ` 37,364 crore ($ 6.0 billion). Profit after tax was higher by 4.8 at ` 23,566 crore as against ` 22,493 crore in the previous year. 4Q FY : FINANCIAL PERFORMANCE REVIEW AND ANALYSIS (CONSOLIDATED) For the quarter ended 31 st March 2015, RIL achieved a turnover of ` 70,863 crore ($ 11.3 billion), a decrease of 33.3, as compared to ` 106,208 crore in the corresponding period of the previous year. Sharp Y-o-Y fall in benchmark oil price of around 50 was the key factor for the decline in revenue. Exports from India were lower by 44.0 at ` 37,480 crore ($ 6.0 billion) as against ` 66,875 crore in the corresponding period of the previous year due to lower commodity oil prices. Cost of raw materials declined by 52.0 to ` 40,220 crore ($ 6.4 billion) from ` 83,749 crore on Y- o-y basis. Employee costs were at ` 1,659 crore ($ 265 million) as against ` 1,575 crore in corresponding period of the previous year. Other expenditure increased by 27.7 on a Y-o-Y basis from ` 7,247 crore to ` 9,258 crore ($ 1.5 billion) primarily due to consolidation of Network 18 Media & Investments Limited from current year. Operating profit before other income and depreciation increased by 4.7 on a Y-o-Y basis from ` 9,426 crore to ` 9,868 crore ($ 1.6 billion) Page 4 of 33

5 Other income was higher at ` 2,172 crore ($ 348 million) as against ` 2,097 crore in corresponding period of the previous year, primarily on account of higher profit on sale of investments. Depreciation (including depletion and amortization) was lower by 4.2 to ` 2,787 crore ($ 446 million) as compared to ` 2,910 crore in corresponding period of the previous year. Interest cost was at ` 677 crore ($ 108 million) as against ` 978 crore in corresponding period of the previous year. Interest cost was lower due to lower average exchange rate during the quarter. Profit after tax was higher by 8.5 at ` 6,381 crore ($ 1.0 billion) as against ` 5,881 crore in the corresponding period of the previous year. Basic earnings per share (EPS) for the quarter ended 31 st March 2015 was ` 21.7 as against ` 20.0 in the corresponding period of the previous year. Outstanding debt as on 31 st March 2015 was ` 160,860 crore ($ 25.7 billion) compared to ` 138,761 crore as on 31 st March Cash and cash equivalents as on 31 st March 2015 were at ` 84,472 crore ($ 13.5 billion). These were in bank deposits, mutual funds, CDs and Government Bonds and other marketable securities. The capital expenditure for the year ended 31 st March 2015 was ` 100,247 crore ($ 16.0 billion) including exchange rate difference capitalization. Capital expenditure was principally on account of ongoing expansions projects in the petrochemicals and refining business at Jamnagar, Dahej and Hazira, Broad band Access and US Shale gas projects. RIL retained its domestic credit ratings of AAA from CRISIL and FITCH and an investment grade rating for its international debt from Moody s as Baa2 and BBB+ from S&P. Page 5 of 33

6 REFINING & MARKETING BUSINESS (In ` Crore) 4Q 3Q 4Q wrt 3Q wrt 4Q wrt Segment Revenue 56,442 81,777 96,668 (31.0) (41.6) 339, ,852 (16.3) Segment EBIT 4,902 3,267 3, ,827 13, Crude Refined (Mn MT) GRM ($ / bbl) EBIT Margin () revenue from the Refining and Marketing segment decreased by 16.3 Y-o-Y to ` 339,890 crore ($ 54.4 billion), reflecting lower average crude oil prices during the year. Refining EBIT increased by 18.2 Y-o-Y to a record level of ` 15,827 crore, supported by low energy prices, strong light product cracks, favorable crude differentials and stable middle distillates. RIL s gross refining margins (GRM) for the year stood at $ 8.6/bbl as against $ 8.1/bbl in the previous year. RIL was able to fully capitalize on the market conditions, through its operational excellence, higher efficiency and well executed strategies around crude sourcing and product placement. Continuing its emphasis on processing challenging and most advantageous crudes, RIL processed several new crudes, taking the total number of crudes processed so far to 144. The crude sourcing strategy was driven by continuous adjustment of sourcing pattern based on relative economics. The ability to operate at high utilization levels and switch product slate to suit market conditions enabled RIL to capture margin optimization opportunities in the market. During, RIL Jamnagar refineries processed 67.9 MMT of crude, an average utilization of 110. In comparison, average utilization rates for refineries globally in were 86.9 in North America, 80.7 in Europe and 83.5 in Asia. European utilization rates increased on the back of higher margins driven by lower crude prices. For the same period, the U.S. and Asian utilization rates dropped marginally. Page 6 of 33

7 4Q revenue from the Refining and Marketing segment decreased by 41.6 Y-o-Y to ` 56,442 crore ($ 9.0 billion). Refining segment recorded highest ever quarterly EBIT of ` 4,902 crore, up 23.7 Y-o-Y. This was achieved despite lower crude throughput on account of a planned turnaround during the quarter. GRMs for the quarter were robust at $ 10.1/bbl, supported by lower flat prices resulting in lower fuel costs and firm gasoline, gasoil and naphtha cracks. RIL s exports of refined products from India was at $ 5.2 billion during the 4Q as compared to $ 9.9 billion in 4Q. In terms of volume, exports of refined products were 9.7 MMT during 4Q as compared to 10.1 MMT in 4Q. During, the benchmark Singapore complex margin averaged $ 6.3/bbl as compared to $ 5.9/bbl in. Except middle distillates, which were marginally lower, all other cracks showed strength driving the overall margin environment. 4Q Singapore complex margin strengthened on Q-o-Q basis to $ 8.5/bbl compared to $ 6.3/bbl due to stronger gasoline, naphtha and fuel oil cracks. Singapore gasoil cracks averaged $16.3/bbl during the quarter as against $16.2/bbl in the previous quarter. Gasoil cracks performed marginally better on Q-o-Q basis on improving demand, partly due to reduction in pump prices following the drop in crude prices last year and seasonal factors. 4Q gasoline cracks were higher at $15.4/bbl as compared to $13.4/bbl in the previous quarter. Gasoline cracks were supported by firm demand in key markets including USA, India and China. Further support was provided by unplanned outages including the strikes that affected US refiners. Asian naphtha cracks were strong on a Q-o-Q basis at $ 1.5/bbl as compared to $ -5.1/bbl. Improvement in the naphtha cracks were led by strong buying from regional petrochemical plants and higher cracker run rates. Also, Chinese naphtha stocking ahead of their planned refinery turnarounds provided some support for naphtha demand. Page 7 of 33

8 On a Q-o-Q basis, fuel oil cracks improved significantly to $ -3.0/bbl as compared to $ -7.2/bbl. Fuel oil cracks gained due to firmer regional demand (China & Japan) on lower outright prices, even though bunker demand support was limited. On a Q-o-Q basis, Arab Light Arab Heavy crude differential narrowed by $ 0.40/bbl to $ 3.6/bbl. Higher production of lighter grades and increased demand for heavier grades on stronger fuel oil cracks, led to the narrowing of differentials. PETROCHEMICALS BUSINESS (In ` Crore) 4Q 3Q 4Q wrt 3Q wrt 4Q wrt Segment Revenue 21,754 23,001 26,541 (5.4) (18.0) 96, ,018 (6.9) Segment EBIT 2,003 2,064 2,150 (3.0) (6.8) 8,291 8,403 (1.3) EBIT Margin () Production in India (Million Tonnes) revenue from the Petrochemicals segment decreased by 6.9 Y-o-Y to ` 96,804 crore ($ 15.5 billion), reflecting lower product prices resulting from sharp decline in crude and feedstock prices. Petrochemicals segment EBIT was marginally lower at ` 8,291 crore ($ 1.3 billion), as strong polymer deltas were offset by sharp decline in PX deltas and weak PTA / MEG deltas. Petrochemicals EBIT margins were higher at 8.6 as product deltas held up well despite lower absolute product prices. During product prices were lower by around 8 on Y-o-Y basis. The steep decline witnessed during the second half of the year continued to weigh on the overall sentiments and markets remained cautious and highly sensitive to even minor moves in crude oil price. 4Q revenue from the Petrochemicals segment declined by 18.0 Y-o-Y to ` 21,754 crore ($ 3.5 billion) due to lower feedstock and product prices. EBIT for the quarter declined by 6.8 at Page 8 of 33

9 ` 2,003 crore on Y-o-Y basis. However, EBIT margin improved to 9.2 for the quarter as compared to 8.1 in the same period last year. Improvement in EBIT margins were aided by firm polymer and polyester deltas. Polymer & Cracker Sector: Naphtha prices in Asia were lower by 18 in compared to due to adequate supply and drop in crude oil prices. Ethylene prices were down by 5, lagging the decline in feedstock naphtha prices due to tight supply and improved demand. During polymer prices were lower by 3-7 due to stable demand amidst falling feedstock prices. Global cracker operating rates were higher at 88 during, which is higher than the five year average. PE and PP deltas for the year were up 21 and 83 respectively on Y-o-Y basis, driven by firm demand and weak feedstock prices. PVC deltas declined marginally on Y-o-Y basis. In India polymer demand continued to be healthy. During, Indian polymer demand was higher by 6.7. PP demand grew 8.1 Y-o-Y with improved demand from raffia packaging, non-woven, multi filament, automotive, hygiene applications and appliances sector. PE demand was higher by 6.3 due to good demand from film packaging, moulded products (i.e. FMCG, Pharma and Food packaging), and paper/woven sacks lamination packaging sector. PVC domestic demand was higher by 5.4 with higher demand from pipe and fitting sector. During 4Q, polymer prices corrected by on Q-o-Q basis, as product prices adjusted to lower feedstock costs. Polymer deltas normalised after seeing an aberrant move in the previous quarter. Polymer deltas (particularly PE & PP) declined on Q-o-Q basis with stabilizing feedstock and product prices. However, deltas were stable as compared to the levels seen in the first half of the year. The maintenance shutdown in Middle East supported polymer deltas in the region. For the quarter, RIL s polymer production was lower at 1.0 MMT due to planned turnaround at Nagothane. RIL continues to maintain its leadership position in the domestic market. Page 9 of 33

10 Elastomer Butadiene prices for the year averaged at $1,120/MT, down 18 on Y-o-Y basis. Softness in Butadiene prices was also reflected in downstream elastomers with PBR prices down 15 Y-o-Y to $ 1,700/MT. PBR deltas remained under pressure with continued weakness in automobile sector demand. Butadiene prices declined sharply in 4Q to $ 726/MT, down 31 on Q-o-Q basis. Sharp decline in crude oil prices, soft demand from synthetic rubber and ABS sector, coupled with new capacities resulted in lower prices. Higher operating of naphtha cracker, ensured abundant availability of feedstock (crude C4s) required for extracting Butadiene further accentuated the price decline. PBR prices dropped sharply on Q-o-Q basis by 29 to $ 1,236/MT due to weak automobile sector demand and lower feedstock costs. PBR deltas were at $ 510/MT, down 24 on Q-o-Q basis. RIL is the only producer of PBR in India. After the start-up of new PBR facility at Hazira, imports into India were down by 24 over the last quarter. RIL s PBR production stood at 30 KT during 4Q. RIL has stabilized operations at its new 150 KTA SBR plant at Hazira, having capability to produce entire range of Dry as well as oil extended grades of emulsion SBR. With this RIL has reaffirmed its leadership position in synthetic rubbers in Indian market. RIL is the largest synthetic rubber producer in India with installed capacity of over 250 KTA. Polyester Chain Fibre intermediate prices were weak through due to lower feedstock cost and significant oversupply in PX and PTA. On Y-o-Y basis, prices for PX, PTA and MEG were down by PX deltas declined sharply by 27 to $ 355 /MT, reflecting the impact of new capacity addition in the region. PTA deltas declined by 8 to $ 108/MT, partly supported by closures and production rationalisation. While MEG deltas were marginally lower, they were supported by tight ethylene chain and declining port inventory in China. Page 10 of 33

11 During 4Q, PX prices largely tracked the upstream markets. Oil price stability in early 4Q helped PX markets to settle February 15 contract prices, the second settlement after October 14. However, March 15 contract prices remained unsettled with renewed volatility towards the end of the quarter. PX deltas remained weak with 15 Q-o-Q decline. PTA markets during 4Q gained from the healthy demand till the Chinese holidays in midquarter. PTA prices averaged at $ 628/MT, down 19 Q-o-Q, tracking fall in PX prices. PTA deltas were lower by 8 on Q-o-Q basis. Markets in general remained oversupplied and conditions remain tough for sustaining operating rates; a large capacity of 3.2 MMTPA shut operations and closed down the company owing to financial bankruptcy. MEG markets were guided by PTA and polyester markets. Chinese port inventories also have been lower at 600 KT compared to 1060 KT last year. This along with tightness in ethylene markets supported MEG prices and deltas. While MEG prices were down 5 Q-o-Q, deltas were up 14 Q- o-q at $ 457/MT. Polyester prices declined during in line with the lower feedstock prices and cautious downstream buying. With weak fibre intermediates prices, polyester deltas witnessed Y-o-Y improvement. Particularly, PFY deltas were up 19 to $ 402/MT whereas PSF deltas increased by 21 to $ 214/MT. domestic demand in India was healthy compared to last year, but was largely cautious factoring the price volatility and liquidity factors. For, overall polyester demand grew by 7 Y- o-y. The growth has been led by PFY (+6) and PET (+12). Amongst other developmental initiatives, the government has proposed to support set up of garment and apparel manufacturing centres in each of the north-eastern states. During 4Q, Polyester markets remained healthy before the Chinese Lunar holidays. However, the markets turned cautious post Chinese holidays. Polyester prices declined by 15 on Q-o-Q basis, lagging the fall in the intermediate prices during the previous quarter. On a Q-o-Q basis, polyester fibre and yarn deltas declined by 17 with normalization of deltas from aberrant levels Page 11 of 33

12 with stabilizing feedstock and product prices. Markets in USA continued to be buoyant with hikes noticed in production and shipments both for filament and staple fibre. Major segments of growth were fibre fill, non-wovens and carpets. PET markets remained healthy during the quarter, with players procuring volumes stocking up for the upcoming seasonal demand, amidst the stability in crude oil prices and anticipation of prices bottoming out. PET deltas declined by 22 on Q-o-Q basis as product prices normalized during the quarter. During the quarter, RIL successfully commissioned new PET resin facility at Dahej, Gujarat. The plant consists of two lines with a combined manufacturing capacity of 650 KTA. This is one of the largest bottle-grade PET resin capacity at a single location globally. This consolidates Reliance s position as a leading PET resin producer with a global capacity of 1.15 MMTPA. RIL also successfully commissioned new PTA plant at Dahej, Gujarat. The plant with a capacity of 1150 KTA is built with Invista technology. This state-of-the-art facility is highly energy efficient and environment friendly. With the commissioning of this plant, RIL s total PTA capacity will increase to 3.2 MMTPA and global capacity share to 4. Indian market is currently deficit in PTA by over 1.5 MMTPA. The startup of the new PTA plant at Dahej will take India closer to self-sufficiency in PTA. OIL AND GAS (EXPLORATION & PRODUCTION) BUSINESS (In ` Crore) 4Q 3Q 4Q wrt 3Q wrt 4Q wrt Segment Revenue 2,513 2,841 2,798 (11.5) (10.2) 11,534 10, Segment EBIT (41.2) (35.8) 3,181 2, EBIT Margin () Page 12 of 33

13 DOMESTIC OPERATIONS (In ` Crore) 4Q 3Q 4Q wrt 3Q wrt 4Q wrt Segment Revenue 1,223 1,347 1,417 (9.2) (13.7) 5,507 6,068 (9.2) Segment EBIT (38.6) (56.6) 1,250 1,626 (23.1) EBIT Margin () revenues for domestic E&P operations was lower by 9.2, led by lower oil/condensate prices and decline in gas production. Segment EBIT declined by 23.1 to ` 1,250 crore ($ 200 million) on account of the lower realizations, with no commensurate reduction in costs. On a Q-o-Q basis, 4Q Revenues and EBIT were down by 9.2 and 38.6 respectively, due to lower average oil prices and lower gas production from KG-D6 and Tapti fields. KG-D6 Production Update: KG-D6 field produced 1.96 million barrels of crude oil, 0.32 million barrels of condensate and 158 BCF of natural gas in, a growth of 12 in case of Condensate and a reduction of 3 and 12 of Crude oil and Natural Gas respectively on a Y-o-Y basis. The decline in production was largely due to natural decline in the fields coupled with partial shutdown of MA field due to HUDUD cyclone. During 4Q, KG-D6 field produced 0.5 million barrels of crude oil, 0.1 million barrels of condensate and 36.5 BCF of natural gas, a reduction of 3 of Crude oil, 0.4 of Condensate and 5 of Natural Gas on a Q-o-Q basis. Fall in production is mainly due to natural decline in the fields coupled with partial shutdown of MA field due to a fire in the East West pipeline, partly offset by incremental production from side track well MA5H. Key Project Update: As part of the enhanced gas recovery activities, the following progress made during the quarter: Page 13 of 33

14 MA5H side track was successfully completed and put to production. Commenced drilling of substitute well B7 in D1-D3. Two compressors have been successfully commissioned, with the third compressor expected to be commissioned by early Q1 FY16. OT arrival pressure has been successfully lowered to the planned level of 12 bar Post completion of appraisal wells in MJ1, an extensive reservoir modelling and engineering is underway. Panna Mukta and Tapti Production update: Panna-Mukta fields produced 7.23 million barrels of crude oil a reduction of 2 on Y-o-Y basis and 70.7 BCF of natural gas a growth of 8.1 on Y-o-Y basis in. The increase in production was on account of incremental gain from existing wells and effective well intervention activities partly offset with decreases in production due to unplanned shutdowns during the year including a shutdown in July 14 on account of integrity issue with South Bassein Hazira Trunk (SBHT) coupled with natural decline. Panna-Mukta fields produced 1.6 million barrels of crude oil and 17.5 BCF of natural gas in Q4 a reduction of 12 and 6 respectively on Q-o-Q basis. The decrease in production was due to natural decline and well integrity issues coupled with rig based interventions for workovers. Tapti fields produced 0.22 million barrels of condensate and BCF of natural gas in reduction of 22 and 48 respectively on Y-o-Y basis. Tapti fields produced 0.1 million barrels of condensate and 2.8 BCF of natural gas in 4Q - growth of 3 of Condensate production and reduction of 7 of Natural Gas on Q-o-Q basis. The decrease in Gas Production was due to natural decline coupled with water loading of wells whereas increase in Condensate production was due to higher Condensate to Gas ratio. The field is progressing towards cessation of production. Page 14 of 33

15 Key Project update: Subsequent to mobilisation of rig in last quarter, Panna Mukta JV commenced workover activities and completed 5 workovers during the quarter. Mukta B Development: Topside and Jacket installation completed and activity of Installation other facilities are in advance stage of completion. Drilling of 6 wells are planned to be drilled during monsoon Tapti Field Abandonment: Tapti JV achieved resolution with GOI that JV will continuing to be responsible for abandonment obligation of Tapti B facilities and ONGC will take over Tapti Part A facilities in accordance with Tapti Production Sharing Contract. CB-10 Block During the Quarter, CB-10 JV secured review of Declaration of Commerciality (DOC) by Management Committee. JV is currently in the process of preparation of development plan for submission to GoI by mid of FY Page 15 of 33

16 CBM Blocks Significant progress made in the Phase 1 of development activities in two CBM blocks, Sohagpur East and Sohagpur West for achieving first gas by 2Q FY16. The Phase 1 comprises of Drilling and completion of 229 wells, 2 nos of Gas Gathering Station and 8 nos of Water gathering stations with associated pipelines. 77 of the Phase 1 activity completed till 31 st March, Land acquisition for wells sites and facilities are progressing as per plan 3 rigs are in operation performing multiple operations. The drilling of 168 surface holes, 153 production holes and performed 120 Hydro-fracturing jobs out of 229 wells as part of Phase 1 has been completed. Detailed engineering and Construction activities is completed. Installation and erection of most of equipment is nearly completion. Shahdol Phulpur Gas Pipeline - Land acquisition has been completed for all critical installations. RoU for 261 km out of 302 km is handed over to pipeline construction contractors. Basic engineering (FEED) and detailed engineering are completed. Ordering for all long lead and other items has been completed. Overall project progress of 72 is achieved till 31 st March, 2015 and RIL is fully geared up for completing Shahdol-Phulpur pipeline by 2Q FY16. Oil & Gas (US Shale) (In ` Crore) 4Q CY14 3Q CY14 4Q CY13 wrt 3Q CY14 wrt 4Q CY13 CY14 CY13 wrt CY13 Segment Revenue 1,286 1,488 1,376 (13.6) (6.5) 6,010 4, Segment EBIT (40.7) (23.1) 1,949 1, EBIT Margin () Note: 4Q/ CY14 financials for US Shale are consolidated in 4Q/ results as per accounting standards Page 16 of 33

17 Review of US Shale Operations Shale Gas business continued to witness macro headwinds, with sequential softening of commodity prices. For the quarter, WTI averaged 34 lower sequentially at $48.63/bbl and Henry Hub Gas prices averaged 23 lower sequentially at $2.88/MMbtu in 4Q. For, WTI averaged lower by 18 Y-o-Y at $81.0/bbl while HH Gas was lower by 8 at $3.8/MMbtu. NGL absolute realization remained somewhat stable, though it improved as a percentage of WTI to 36.5 in 4Q from 32.5 in 3Q. Natural Gas differentials remained high in the NE region and continue to be a challenge for Marcellus JVs. Operational performance remained strong, with continued production ramp-up, lower opex and lower capex with improving efficiencies and costs. However, business performance (revenue and earnings) suffered due to sharply lower realization during the quarter. Development growth momentum remained strong with over 180 wells drilled and 212 wells put on production (up 32 Y-o-Y) in. Total producing well count stood at 865 in Mar 15, as compared to 653 wells in Mar 14. Average gross production improved by 17 to 1228 Mcfe/day in 4Q, compared to 1053 Mcfe/day in 4Q. Net sales volume (Reliance share) improved by 23 YoY to Bcfe in. Activity levels slowed down across JVs during 4Q-, given weak market conditions. Pioneer JV s gross production averaged at 735Mmcfe/d, including ~69,300 bbl/d of condensate reflecting a marginal growth over 3Q. Production at Chevron JV grew 7 sequentially to 392 Mmcfe/d in 4Q. At Carrizo JV, market conditions forced temporary curtailment in production, based on JV decision to flow wells at an operationally optimal level, which led to a 36 sequential drop in production rates to 101 Mmcfe/d during the quarter. Lower volumes, coupled with sharply lower realization, resulted in overall revenues and EBITDA for the quarter being lower by 33 and 48 respectively. Overall capex for the quarter was at $234 MM and cumulative investment across all JVs stood at $8.1 billion. Audited proved reserves grew by 11 to 2.95 Tcfe for the calendar year Page 17 of 33

18 Eagle Ford shale remains one of the most competitive liquid shale plays in the US and is well positioned to overcome challenges of a volatile price environment. Reliance-Pioneer JV acreages are at the core of Eagle Ford shale play and are competitively positioned to ensure profitable development even in the future. Value creation initiatives progressed well across all JVs during the year and delivered improved costs and efficiencies while increasing well inventory and enhancing resource potential. Pioneer JV successfully decreased D&C costs through use of 2-string casing design and efficient pad operations. Chevron JV realized some well cost improvements, but significantly higher scale and consistency is needed for overall competitive capital efficiency. Chevron is also working on contract re-negotiation to capture lower product and services costs and also focusing on drilling and completion operational efficiencies through design improvements and streamlining of execution. Carrizo JV realized significant cost savings during the year. Given the weak commodity price environment, Reliance s shale gas business is focused on capital preservation, by moderating activity levels, reducing service costs and improving efficiencies. Ensuring profitable development and retaining optionality through high grading acreages and improving netbacks will be the key challenges going forward. Challenged market outlook would most likely curtail near-term growth, but long term outlook for the business remains promising. ORGANIZED RETAIL (In ` Crore) 4Q 3Q 4Q wrt 3Q wrt 4Q wrt Segment Revenue 4,788 4,686 3, ,640 14, Segment EBIT (21.8) EBIT Margin () Reliance Retail delivered strong performance in revenue and profits growth for the year. Total revenue grew by 21.2 to ` 17,640 crore and achieved record PBDIT of ` 784 crore for the year. Driven by strong value proposition, wide product offering and a captivating shopping experience, Page 18 of 33

19 the business recorded a LFL growth of up to 17 across various format sectors during the year. The company maintained the distinction of being India s largest retailer. Despite slow consumption growth and challenging macroeconomic environment, fourth quarter revenue for Reliance Retail grew by 31.1 Y-o-Y to ` 4,788 crore. Reliance Retail consolidated its leadership position in all focus sectors. The company added 930 stores and 0.9 million square feet of operating space in the year across the sectors. As on 31st March 2015, Reliance Retail operated 2,621 stores across 200 cities, with over 12.5 million square feet space. Value Formats further consolidated leadership position in the grocery retail business. Value formats augmented its network of stores in core cities by opening new stores to further strengthen market share and improve sales and process efficiencies. Reliance Market, the cash and carry format operates the largest chain of stores in the country and is the market leader in its segment. The format continued its rapid geographical expansion and now operates 43 stores across the country. Reliance Market partners with kirana, HORECA and small enterprises in supporting their growth and providing them with a modern distribution system. Reliance Market serves over 1.5 million registered members and is becoming a true partner of inclusive growth. The Fashion & Lifestyle sector delivered another quarter of strong growth. Reliance Trends provides fashionable, high quality products at great value and is true to its motto of democratising fashion. The format has achieved the distinction of operating over 200 stores and sells over 150,000 garments per day making it the largest fashion destination in the country. Reliance Footprint has emerged as destination for multi-brand family footwear store format and operates over 200 stores across 100 cities. Digital sector built upon its leadership position and achieved a distinction of operating over 1000 stores. Digital Xpress Mini, format that is positioned towards serving communication and mobility needs continued with accelerated store opening and is the largest mobile phone retail chain in the country. The format is now increasingly becoming a distribution platform for national and Page 19 of 33

20 international brands as it provides an unmatched distribution reach across a wide range of Tier I to Tier III cities. Reliance Retail grew its presence through its partnerships during this period. Partnerships with Marks & Spencer, Grand Vision and Payless Shoesource continued its pace of robust growth. Reliance Brands continued to make more luxury brands available to the Indian consumers by expanding presence through various partner brands. BROADBAND ACCESS Reliance Jio Infocomm Limited (RJIL), a subsidiary of RIL, is the first telecom operator to hold pan India Unified License. RJIL is the only private player with Broadband Wireless Access spectrum in all the 22 telecom circles of India and plans to provide reliable fast internet connectivity and rich digital services on a pan India basis. In addition, RJIL has in 2014 acquired spectrum in 1800 MHz in 14 circles across India. In March 2015, RJIL has successfully acquired the right to use spectrum in 800 MHz & 1800 MHz in 13 key circles across India in the Spectrum Auction conducted by Department of Telecommunication (DoT), Government of India. With this acquisition, in addition to the pan-india 2300 MHz spectrum, RJIL has spectrum in either 800 MHz or 1800 MHz or both in 20 out of the total of 22 circles in the country. RJIL s total equivalent spectrum footprint has increased from 597.6MHz to 751.1MHz (including uplink and downlink), strengthening its position as the largest holder of liberalized spectrum. RJIL plans to provide seamless 4G services using LTE in 800MHz, 1800MHz and 2300MHz bands through an integrated ecosystem. RJIL is setting up a pan India telecom network to provide to the highly underserviced India market, reliable (4th generation) high speed internet connectivity, rich communication services and various digital services in key domains such as education, healthcare, security, financial services, government-citizen interfaces and entertainment. RJIL aims to provide anytime, anywhere access to innovative and empowering digital content, applications and services, thereby propelling India into global leadership in digital economy. Page 20 of 33

21 RJIL has made significant progress in building its LTE business, including physical network infrastructure, systems and processes, sales and distribution network, applications and services, content etc. It is working with strategic partners who have committed significant resources, knowhow and global talent to support deployment and testing activities currently underway. Crucial developments are listed as follows: Mobile Switching Centre Code (MSC), Mobile Country Code (MCC) and Mobile Network Code (MNC) for mobile access services has been allotted Signalling point codes for launching national long distance (NLD) and international long distance (ILD) are allotted Clearances to set up international internet gateways has been received Successful demonstration of Lawful Intercept and Monitoring (LIM) system in few circles with DoT Demonstration of capabilities of Aadhaar based e-kyc for paperless activations of subscribers RJIL has exhibited trial 4G services at various Techfest, College events, Trade shows etc. and has offered high-speed Wi-Fi broadband services to various participants. Participants were able to experience benefit of high speed wireless connectivity for hand held devices (smart phones and tablets) over a blend of LTE and Wi-Fi networks. RJIL has launched trial Wi-Fi hot spots across India and is in the process of entering agreements with various State and Local Authorities to provide Wi-Fi services. (All $ numbers are in US$) Page 21 of 33

22 Sr. No. AUDITED CONSOLIDATED FINANCIAL RESULTS FOR THE QUARTER/YEAR ENDED 31 st MARCH 2015 (` in crore, except per share data) Particulars Quarter Ended Year Ended 31 Mar Dec Mar Mar Mar 14 1 Income from Operations (a) Net Sales/Income from operations (Net of excise duty and service tax ) 67,470 93, , , ,460 Total income from operations (net) 67,470 93, , , ,460 2 Expenses (a) Cost of materials consumed 40,220 62,196 83, , ,491 (b) Purchases of stock-in- trade 6,817 5,050 3,115 25,701 17,091 (c) s in inventories of finished goods, work-inprogress and stock-in-trade (352) 6,234 (1,684) 1,483 (560) (d) Employee benefits expense 1,659 1,548 1,575 6,262 5,572 (e) Depreciation, amortization and depletion expense 2,787 2,954 2,910 11,547 11,201 (f) Other expenses 9,258 9,811 7,247 37,763 31,067 Total Expenses 60,389 87,793 96, , ,862 3 Profit from operations before other income and finance costs 7,081 5,735 6,516 25,817 23,598 4 Other Income 2,172 2,340 2,097 8,495 8,911 5 Profit from ordinary activities before finance costs 9,253 8,075 8,613 34,312 32,509 6 Finance costs 677 1, ,316 3,836 7 Profit from ordinary activities before tax 8,576 6,938 7,635 30,996 28,673 8 Tax expense 2,080 1,747 1,759 7,474 6,215 9 Net Profit for the Period 6,496 5,191 5,876 23,522 22, Share of profit /(loss)of associates (67) Minority interest (48) (15) (8) (74) (55) 12 Net Profit after taxes, minority interest and share in profit of associates 6,381 5,256 5,881 23,566 22, Paid up Equity Share Capital, Equity Shares of ` 10/- each. 3,236 3,235 3,232 3,236 3, Reserves excluding revaluation reserves 214, ,882 Earnings per share (Face value of ` 10) 15 (a) Basic (b) Diluted A PARTICULARS OF SHAREHOLDING 1 Public shareholding (including GDR holders) - Number of Shares (in crore) Percentage of Shareholding () Promoters and Promoter Group shareholding a) Pledged / Encumbered - Number of shares (in crore) Percentage of shares (as a of the total shareholding of Promoters and Promoter Group) Percentage of shares (as a of the total share capital of the company) b) Non Encumbered - Number of shares (in crore) Percentage of shares (as a of the total shareholding of Promoters and Promoter Group) Percentage of shares (as a of the total share capital of the company) st December 2014 figures are unaudited. Page 22 of 33

23 Notes: 1. The figures for the corresponding previous period have been restated/regrouped wherever necessary, to make them comparable. The figures of last quarters are the balancing figures between audited figures in respect of the full financial years and the published year to date figures up to the third quarters of the respective financial years. 2. The consolidated accounts have been prepared as per Accounting Standard (AS) 21 on Consolidated Financial Statements and Accounting Standard (AS) 23 on Accounting for Investments in Associates in Consolidated Financial Statements. 3. The paid up Equity Share Capital in item no 13 of the above result, includes 29,23,54,627 equity shares directly held by subsidiaries/trust before their becoming subsidiaries of the Company, which have been excluded for the purpose of computation of Earnings per share. 4. Based on alternate interpretation for calculation of diluted EPS as per Accounting Standard (AS) 20 the diluted EPS for the quarter ending March 15, December 14 & March 14, Year Ended March 15 and Year Ended March 14 are ` 21.6, ` 17.8, ` 20.0, ` 79.9 and ` 76.4 respectively. 5. The Government of India (GoI), by its letters dated 2nd May, 2012, 14th November, 2013 and 10th July, 2014 has communicated that it proposes to disallow certain costs which the Production Sharing Contract (PSC), relating to Block KG-DWN-98/3 entitles the Company to recover. Based on legal advice received, the Company continues to maintain that a Contractor is entitled to recover all of its costs under the terms of the PSC and there are no provisions that entitle the Government to disallow the recovery of any Contract Cost as defined in the PSC. The Company has already referred the issue to arbitration and already communicated the same to GoI for resolution of disputes. Pending decision of the arbitration, the demand from the Government of $ 117 million (` 731 crore) for RIL share (total demand $ 195 million) towards additional Profit Petroleum has been considered as contingent liability. Page 23 of 33

24 6. In July 2014, RIL has completed the acquisition of control of Network 18 Media and Investments Limited ( NW18 ) including its subsidiary TV18 Broadcast Limited ( TV18 ). 7. Pursuant to the enactment of Companies Act 2013, the company has applied the estimated useful lives as specified in Schedule II. Accordingly the unamortised carrying value is being depreciated / amortised over the revised/remaining useful lives. The written down value of fixed Assets whose lives have expired as at 1st April 2014 have been adjusted net of tax, in the Profit and Loss Account. 8. There were no investor complaints pending as on 1st January All the 420 complaints received during the quarter ended 31 st March 2015 were resolved and no complaints were outstanding as on 31 st March The Audit Committee has reviewed the above results. 10. The Board of Directors have approved the above results and its release at their meeting held on 17 th April Page 24 of 33

25 Sr. No. A Particulars Audited Consolidated Statement of Assets and Liabilities As at 31st March 2015 ` in Crore As at 31st March 2014 EQUITY AND LIABILITIES 1 Shareholders' Funds (a) Share Capital 2,943 2,940 (b) Reserves and Surplus 215, ,730 Subtotal - Shareholders' Funds 218, ,670 2 Share application money pending allotment Minority Interest 3, Non - Current Liabilities (a) Long-Term borrowings 120, ,016 (b) Deferred Payment Liabilities 7,388 3 (c) Deferred Tax Liability (net) 12,974 11,925 (d) Other Long Term Liabilities 1, (e) Long Term Provisions 1, Subtotal -Non - Current liabilities 144, ,041 5 Current Liabilities (a) Short-term borrowings 27,965 32,792 (b) Trade Payables 59,407 60,860 (c) Other current liabilities 45,789 17,058 (d) Short term provisions 5,392 4,446 Subtotal - Current Liabilities 138, ,156 TOTAL- EQUITY AND LIABILITIES 504, ,843 B ASSETS 1 Non-Current Assets (a) Fixed Assets 318, ,911 (b) Goodwill on Consolidation 4,397 - (c) Non-current investments 25,437 26,867 (d) Long-term loans and advances 19,538 17,996 (e) Other Non-Current Assets 14 - Sub Total Non-Current Assets 367, ,774 2 Current Assets (a) Current investments 51,014 33,735 (b) Inventories 53,248 56,720 (c) Trade receivables 5,315 9,411 (d) Cash and Bank Balances 12,545 37,984 (e) Short-term loans and advances 11,171 9,965 (f) Other current assets 3,284 3,254 Sub Total - Current Assets 136, ,069 TOTAL ASSETS 504, ,843 Page 25 of 33

26 AUDITED CONSOLIDATED SEGMENT INFORMATION FOR THE QUARTER / YEAR ENDED 31 st MARCH 2015 ` in Crore Sr. Quarter Ended Year Ended No. Particulars 31 Mar Dec Mar Mar Mar Segment Revenue - Petrochemicals 21,754 23,001 26,541 96, ,018 - Refining 56,442 81,777 96, , ,852 - Oil and Gas 2,513 2,841 2,798 11,534 10,902 - Organized Retail 4,788 4,686 3,653 17,640 14,556 - Others 2,833 3,447 1,804 10,507 6,271 Gross Turnover (Turnover and Inter Segment Transfers) 88, , , , ,599 Less: Inter Segment Transfers 17,467 19,422 25,256 87,881 95,260 Turnover 70,863 96, , , ,339 Less: Excise Duty / Service Tax Recovered 3,393 2,802 2,780 13,059 11,879 Net Turnover 67,470 93, , , , Segment Results - Petrochemicals 2,003 2,064 2,150 8,291 8,403 - Refining 4,902 3,267 3,962 15,827 13,392 - Oil and Gas ,181 2,811 - Organized Retail Others Total Segment Profit before Interest and Tax 7,820 6,544 7,211 28,674 25,603 (i) Interest Expense (677) (1,137) (978) (3,316) (3,836) (ii) Interest Income 1,085 1,051 1,250 4,513 5,907 (iii) Other Un-allocable Income (Net of Expenditure) ,243 1,089 Profit before Tax 8,509 7,018 7,648 31,114 28,763 (i) Provision for Current Tax (1,732) (1,416) (1,576) (6,296) (5,929) (ii) Provision for Deferred Tax (348) (331) (183) (1,178) (286) Profit after Tax (including share of profit/(loss) of associates) 6,429 5,271 5,889 23,640 22, Capital Employed (Segment Assets Segment Liabilities) - Petrochemicals 46,490 49,734 47,747 46,490 47,747 - Refining 92,520 80,519 67,747 92,520 67,747 - Oil and Gas 71,922 69,896 63,099 71,922 63,099 - Organized Retail 6,201 6,154 5,909 6,201 5,909 - Others 68,866 60,759 45,929 68,866 45,929 - Unallocated 112, , , , ,163 Total Capital Employed 398, , , , ,594 Page 26 of 33

27 Notes to Segment Information (Consolidated) for the Quarter/ Year Ended 31 st March As per Accounting Standard 17 on Segment Reporting (AS 17), the Company has reported "Segment Information", as described below: a) The petrochemicals segment includes production and marketing operations of petrochemical products namely, High density Polyethylene, Low density Polyethylene, Linear Low density Polyethylene, Polypropylene, Polyvinyl Chloride, Polyester Yarn, Polyester Fibres, Purified Terephthalic Acid, Paraxylene, Ethylene Glycol, Olefins, Aromatics, Linear Alkyl Benzene, Butadiene, Acrylonitrile, Poly Butadiene Rubber, Caustic Soda and Polyethylene Terephthalate. b) The refining segment includes production and marketing operations of the petroleum products. c) The oil and gas segment includes exploration, development and production of crude oil and natural gas. d) The organized retail segment includes organized retail business in India. e) Other business segments including broadband access & media which are not separately reportable have been grouped under the others segment. f) Capital employed on other investments / assets and income from the same are considered under unallocable. Page 27 of 33

28 Sr. No. Particulars AUDITED STANDALONE FINANCIAL RESULTS FOR THE QUARTER/YEAR ENDED 31 st MARCH 2015 (` in crore, except per share data) Quarter Ended Year Ended 31 Mar Dec Mar Mar Mar 14 1 Income from Operations (a) Net Sales/Income from operations (Net of excise duty and service tax ) 56,043 80,196 95, , ,117 Total income from operations (net) 56,043 80,196 95, , ,117 2 Expenses (a) Cost of materials consumed 37,638 58,543 81, , ,313 (b) Purchases of stock-in- trade 1,731 1, , (c) s in inventories of finished goods, work-in-progress and stock-in-trade (268) 4,907 (1,236) 1, (d) Employee benefits expense ,686 3,370 (e) Depreciation, amortization and depletion expense 2,132 2,105 2,275 8,488 8,789 (f) Other expenses 7,320 6,755 6,042 28,713 25,621 Total Expenses 49,546 75,093 89, , ,029 3 Profit from operations before other income and finance costs 6,497 5,103 6,056 23,114 22,088 4 Other Income 2,133 2,402 2,036 8,721 8,936 5 Profit from ordinary activities before finance costs 8,630 7,505 8,092 31,835 31,024 6 Finance costs ,367 3,206 7 Profit from ordinary activities before tax 8,226 6,624 7,293 29,468 27,818 8 Tax expense 1,983 1,539 1,662 6,749 5,834 9 Net Profit for the Period 6,243 5,085 5,631 22,719 21, Paid up Equity Share Capital, Equity Shares of ` 10/- each. 3,236 3,235 3,232 3,236 3, Reserves excluding revaluation reserves 212,923 1,93, Earnings per share (Face value of ` 10) (a) Basic (b) Diluted A PARTICULARS OF SHAREHOLDING 1 Public shareholding (including GDR holders) - Number of Shares (in crore) Percentage of Shareholding () Promoters and Promoter Group shareholding a) Pledged / Encumbered - Number of shares (in crore) Percentage of shares (as a of the total shareholding of Promoters and Promoter Group) Percentage of shares (as a of the total share capital of the company) b) Non Encumbered - Number of shares (in crore) Percentage of shares (as a of the total shareholding of Promoters and Promoter Group) Percentage of shares (as a of the total share capital of the company) st December 2014 figures are unaudited. Page 28 of 33